U.S./UK Deal Hinges On Brexit

A future U.S./UK bilateral trade deal, key for U.S. agriculture and other sectors, now hinges on the shape of a final ‘Brexit’ deal if London ratifies a temporary one, and if Northern Ireland and the Irish Republic stay ‘borderless.’  The choice for Britain is stark—either crash out of the EU with a hard customs border between Northern Ireland—part of the UK—and the Republic of Ireland—also part of the EU--or make a ‘soft’ exit that preserves frictionless trade.  A sharply divided British parliament must ok both the preliminary Brexit deal and a final one later, or Britain could be stuck in the EU’s customs union indefinitely, unable to make its own trade deals.

American Farm Bureau’s Veronica Nigh said the early UK-EU deal is a positive first step.

“This had to happen in order to continue to the progress here, this sets up a meeting with Brussels, and the end of the month that was sort of penciled in.”

Nigh adds maintaining frictionless trade between Northern Ireland and the Irish Republic is key for the United States.

“The more that the EU and the UK can continue to operate as a single market with similar tariff profiles and rules, the easier it is for the U.S. to trade with the UK.”

But for now, Nigh said a bilateral deal will have to wait.  She also noted the U.S. will want to know what rules the UK is operating under, before signing a bilateral agreement.

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